Viewpoint: Cryptocurrencies Are Not Money

Did you see that the Bitcoin cryptocurrency traded at $57,000 last Friday, only to fall as low at $28,000 on at least one exchange over the weekend (Dec. 4-5)?

Its price had since partially rebounded, though as of Wednesday evening (Dec. 8), it was only up to about $50,000. This is just the latest example illustrating that cryptocurrencies are not money.

For anything to serve as a medium of exchange and store of value, it must meet several requirements. Among these requirements are that it be:

• Commonly available

• Have little to no cost to hold onto it

• Recognizability

• Transportability

• Consistency of value

• Divisibility

• Difficult to falsify or counterfeit

• Have a relatively high number in circulation

While Bitcoin and other cryptocurrencies may meet many of these requirements, one feature they all lack is consistency in purchasing power. Last weekend’s 50 percent crash was not the only instance of huge volatility in Bitcoin this year. On May 19, that day’s low price was less than 70 percent of the high. The closing price that day was down 34 percent from a week earlier.

This news is republished from another source. You can check the original article here

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